According to the UK paper the decision to block the Paks II deal was taken last week at a meeting of EU commissioners.

Last year Budapest and Moscow agreed to build two nuclear reactors in the town of Paks. EU officials expressed fears that Russia was attempting to divide Europe via energy policy.

All nuclear deals in the EU must be approved by Euratom, which refused to sign off plans for Hungary to import nuclear fuel exclusively from Russia and a probe was launched into how the contract was awarded.

If blocked Hungary has two options: negotiate a new deal or take legal action against the European Commission. Either way the news is likely to further strain tensions between Brussels and Budapest.